In the current high inflation environment, there are 17 strategies help reduce the operational costs of multi-unit apartment buildings, increase occupancy rates, and achieve greater operating income.
Implement RUBS or increase RUBS: Ratio Utility Billing Systems can allocate utility costs paid by the property to tenants, reducing your expenses and encouraging tenants to use utilities more conservatively.
Implement water-saving measures: Update aging equipment, install low-flow toilets, flow restrictors, and showerheads to reduce water usage and lower costs.
Protest property taxes: Collaborate with professional tax advisors to reduce property tax expenses, potentially saving hundreds of thousands of dollars annually.
Implement deposit insurance: Use alternative solutions where tenants pay a small fee upfront instead of a deposit, reducing tenant costs while protecting the owner.
Implement leasing agent bonus programs: Establish tenant referral bonuses to motivate on-site staff, increasing occupancy rates.
Renegotiate and rebid vendor contracts: Regularly reassess contracts, choose the most competitive vendors, and lower maintenance and service costs.
Implement and improve referral programs: Establish tenant referral programs to incentivize tenants to refer new tenants, reducing marketing expenses. Note that the legal limits for rewards for tenant referrals vary by state; Florida has a maximum of $50.
Simplify pre-leasing and turnover processes: Establish efficient unit turnover processes, reduce vacancy time, and increase rental income.
Implement preventive maintenance plans: Regular maintenance, address issues, and reduce deferred maintenance costs, preserving property value.
Install solar or reflective roofs: Install solar panels to lower energy costs and reduce utility expenses; use reflective roofs to lower air conditioning costs.
Install energy-efficient windows and screens: Upgrade windows to energy-efficient types and install screens to reduce air conditioning costs during hot seasons.
Implement energy audits: Collaborate with energy research companies to optimize operational efficiency, reduce costs, and minimize environmental impact.
Energy-efficient lighting: Upgrade to LED lighting, improve brightness, enhance attractiveness, and increase property security.
Hire energy brokers: In specific markets, hire professional energy brokers to negotiate energy services and lower costs.
Improve tenant screening: Conduct rigorous screenings of potential tenants to reduce bad debt rates and improve tenant retention.
Pest control and unit inspections: Regularly address pest issues to maintain a habitable environment and increase tenant satisfaction.
Hire HVAC-certified maintenance personnel: Employ HVAC-certified maintenance staff to promptly address HVAC problems, lower repair costs, and improve tenant retention.
These 17 strategies can help your team operate multi-unit apartment buildings more efficiently, reduce costs, increase occupancy rates, and achieve greater operating income.
